Mike Dell, Silver Lake Said to Disagree on Breakup Fee if Dell (DELL) Bid Fails
Tweet
Share
E-mailGet Alerts DELL Hot Sheet
Price: $406.37 +3.81%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 1.2%
EPS Growth %: +100.0%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 1.2%
EPS Growth %: +100.0%
Join SI Premium – FREE
Is the fact that its even being considered bad news?
Reports out over the weekend had Michael Dell and private equity firm Silver Lake Management disagreeing on a break-up fee should their combined bid to take Dell, Inc. (Nasdaq: DELL) private fail.
While Silver Lake thinks it should be entitled to a $450 million fee should a bid by Carl Icahn and Southeastern Asset Management succeed within a year, Dell thinks that Silver Lake should only be covered for expenses.
Icahn's plan calls for the tender of 1.1 billion Dell shares at $14 each, with a warrant issued to purchase stock for $20 should it rise above that level. Dell would still be a public company under the "Icahn plan." Dell's Special Committee recently said that Icahn's bid wasn't superior to the $13.65 offered by Dell. The company cancelled its shareholder meeting last Thursday, with many speculating that Dell and his partners are looking to garner more shareholder support. The meeting was rescheduled for July 24th.
Shares of Dell are lower at the start Monday.
Reports out over the weekend had Michael Dell and private equity firm Silver Lake Management disagreeing on a break-up fee should their combined bid to take Dell, Inc. (Nasdaq: DELL) private fail.
While Silver Lake thinks it should be entitled to a $450 million fee should a bid by Carl Icahn and Southeastern Asset Management succeed within a year, Dell thinks that Silver Lake should only be covered for expenses.
Icahn's plan calls for the tender of 1.1 billion Dell shares at $14 each, with a warrant issued to purchase stock for $20 should it rise above that level. Dell would still be a public company under the "Icahn plan." Dell's Special Committee recently said that Icahn's bid wasn't superior to the $13.65 offered by Dell. The company cancelled its shareholder meeting last Thursday, with many speculating that Dell and his partners are looking to garner more shareholder support. The meeting was rescheduled for July 24th.
Shares of Dell are lower at the start Monday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Exxon Said To Study Takeover Targets Including Woodside Energy - Bloomberg
- Blackstone Said To Be In Talks To Buy Canada Property Firm H&R - Bloomberg
- United Community Banks sells equipment finance unit for $1.9 billion
Create E-mail Alert Related Categories
Hedge Funds, Insiders' Blog, Mergers and Acquisitions, Private EquityRelated Entities
Carl Icahn, Southeastern Asset Management, Michael DellSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
